Statement on Proposed Rule to Cease Diversion of Medicaid Payments to Big Labor

The Centers for Medicare & Medicaid Services (CMS) proposed a rule to cease the diversion of Medicaid payments from providers into union dues. Their press release can be found here.

National Right to Work President Mark Mix issued the following statement in response:

“Today’s announcement by the Centers for Medicare and Medicaid Services is a vital first step in ending the illegal dues skim that diverts public funds away from the care of Medicaid recipients and into union officials’ coffers. For years, aided by a compliant Obama Administration, Big Labor has siphoned off hundreds of millions of tax dollars in violation of federal law, which is why this rulemaking is now needed make it clear that states cannot legally divert Medicaid funds into the bank accounts of politically-connected union bosses.”

Background:

The 2014 Foundation-won Harris v. Quinn Supreme Court decision found that it was unconstitutional for the state of Illinois to force home care providers paid through Medicaid programs to be forced to pay union fees. That case now continues as 80,000 providers seek the return of funds seized from them in violation of their First Amendment rights.

However, despite the Supreme Court ruling the dues skim has not stopped, which is why in 2017 the National Right to Work Foundation sent a letter to the Department of Health and Human Services, bringing their attention to this issue. Additionally, Foundation President Mix personally raised the issue with Trump Administration officials earlier this year.